18.06.2018 (New Straits Times Online) - PEKAN: Former Prime Minister Datuk Seri Najib Razak has urged the government to take steps to resolve the price and demand of palm oil immediately.

This following the price of crude palm oil, which has been declining nine days consecutively since last Thursday, with current level at RM2,300 per tonne.

Further, the country's export of palm oil for the first 10 days of June fell by 20 percent over last year.

Najib said, following discussions with smallholders here, said many are frustrated with European Union's proposal to increase sanctions against palm oil imports from Malaysia.

"China, which was once the fourth largest importer of palm oil and was in the second place last year due to improved diplomatic and trade relations with Malaysia, is likely to reduce purchase of palm oil following the outcome of the 14th General Election," he said in his Facebook posting.

He said one of the factors for the decline of crude palm oil prices was due to the government's action to impose a 5 per cent tax on palm oil exports.

"Market analysts said it was a major factor in shrinking demand and falling prices. This export tax goes on 5 percent in July and beyond," Najib noted.

Najib also said the previous Barisan Nasional government has suspended the tax for the first four months of this year in ensuring smallholders' income are not affected and the Malaysian palm oil market continues to be competitive in the international market.

"For smallholders in Pekan and all settlers in Malaysia, I urge the Pakatan Government to suspend this export tax until the end of this year or at least until the market price and demand is recovering," he said.

The new government should not be silent with the European Union (EU) decision last Friday to reduce and stop the import of palm oil to abolish the use of palm oil in transport fuels in 2030, Najib emphasised.

"We need to protest these steps and negotiate with the EU immediately as they are the largest palm oil destination for the country," Najib said.